November 5th

Daily Market Commentary



  • MBA Mortgage Applications in the U.S. were reportedly down 2.6%.
  • The ADP Employment Change in the U.S. was reported at 230K, above estimates of 220K.
  • Retail Sales in the Eurozone were reportedly down 1.3% and up 0.6% in month-over-month and year-over-year terms, respectively. Both figures were below estimates.
  • The Markit Services PMI for the Eurozone was reported at 52.3.


  • Brent crude declined to its lowest in four years amid speculation OPEC will refrain from paring a global surplus. West Texas Intermediate extended losses from the lowest closing price in three years.
  • Gold tumbled to the lowest since 2010 as a stronger dollar cut demand, wiping more than $1 billion from the value of bullion-backed funds. Silver headed for the longest run of losses in 19 months.
  • Gold bears are betting that the rout in the metal isn’t over, sending assets in the biggest bullion-backed fund to the lowest since the month that Lehman Brothers Holdings Inc. collapsed.
  • Commodities fell to a five-year low as crude oil to gold lost after the dollar climbed to the highest since 2009, curbing demand for raw materials.


  • Eldorado Gold Corp., the largest foreign producer of the precious metal in China, is seeking a buyer for its mines in the country as part of a dual-track sale process. The miner is seeking as much as $1.5 billion for its four Chinese projects, the people said.
  • Magna International Inc reported a 47 per cent jump in third-quarter earnings, boosted by strong demand in North America. In North America Magna’s vehicle production increased 8 per cent and production sales rose 10 per cent to $4.43-billion in the third quarter ended Sept. 30.(Globe)

United States:

  • U.S. equity-index futures rose after Republicans won their first Senate majority in eight years, taking control of both chambers of Congress.
  • Republicans roared back in the midterm elections on Tuesday, capturing control of the Senate from Democrats, winning crucial governor races and solidifying their majority in the U.S. House.
  • Pacific Investment Management Co. had record redemptions from its biggest mutual fund in the first full month after the surprise departure of former manager Bill Gross, with clients pulling $27.5 billion in October.


  • European stocks rose for the first time in three days as companies from Marks & Spencer Group Plc to Natixis SA rallied after posting better-than-estimated earnings.
  • Antero Midstream Partners LP, the pipeline partnership of Antero Resources Corp., raised $1 billion in its initial public offering in the U.S., pricing an increased number of units above the marketed range.
  • Asian stocks fell, dragging the regional gauge down from the highest level in five weeks, as energy shares retreated after oil extended a three-year low.
  • Toyota Motor Corp., Japan’s biggest automaker, predicted a record profit for a second year, as a weaker yen boosts the value of high-profit Lexus luxury models and SUVs sold abroad.
  • SoftBank Corp. is forecasting its first profit drop in nine years as billionaire Masayoshi Son’s goal of creating the world’s largest wireless carrier stalls on losses at Sprint Corp.

*All information is taken from Bloomberg, unless otherwise noted.